Advantus Capital Management Launches Private Equity Fund of Funds

Business Wire, Jan 28, 2002

Business Editors

ST. PAUL, Minn.--(BUSINESS WIRE)--Jan. 28, 2002

Advantus Capital Management, Inc. announced the formation of Advantus Capital Partners Fund I, L.P., to offer $150-$250 million of limited partnership interests to qualified institutions and high net worth individuals. The fund invests as a limited partner in a diversified portfolio of venture capital, buyout, and other private equity funds. Limited partners in the fund receive the benefit of a successful investment strategy developed for over two decades.

"We believe that market conditions are very favorable for private equity," said Ron Sandquist, managing director, Advantus Private Equity. "Valuations are low, growth prospects are attractive, and there are a lot of good ideas out there. We are very pleased with our managers, all of whom are experienced in building businesses and have ample capacity to take advantage of the current environment."

The fund will be composed of approximately two-thirds early stage venture capital funds and one-third middle-market buyout funds.

"We believe that this mix will yield substantial long-term gains," said Drew Smith, director, Advantus Manager Research. "Unlike public equity investors, venture capital and buyout professionals can have a direct impact on the companies they invest in. We believe the ability to add value is greatest in the areas in which we focus."

The management team at Advantus Capital represents one of the industry's most seasoned private equity teams, with a cumulative total of more than 40 years of private equity experience and 75 years of overall investment experience. They have committed over $423 million to venture capital and buyout investments through 35 managers and 79 individual funds during the last 19 years.

Minnesota Life Insurance Co., of which Advantus is a subsidiary, committed to eight private equity investment partnerships that will be transferred into the fund. The inclusion of these partnerships gives prospective investors the opportunity to examine a substantial portion of the portfolio before making a commitment. Minnesota Life also committed a minimum of $50 million as a limited partner in the fund, making it the insurer's primary investment vehicle for venture capital and buyout fund investments.

Advantus Capital Partners Fund I will be marketed by Advantus Capital Management and Greenfield Capital Partners. Greenfield's principal Michael Byl can be reached at (203) 431-8081 or mbyl@greenfieldcapital.com. Christopher Manlove (651-665-3373) leads the Advantus institutional marketing effort.

The confidential private placement memorandum for the fund currently is available to qualified investors.